RBC drops key climate disclosures after Competition Act changes raise greenwashing concerns
RBC has scrapped its $500bn sustainable finance pledge and halted public climate reporting—moves that climate advocates say signal growing corporate retreat from voluntary ESG commitments, according to The Canadian Press.
The bank cited methodological flaws and recent amendments to Canada's Competition Act that restrict companies from making unverifiable environmental claims.
As per its latest sustainability report, RBC has also decided not to release its energy supply ratio, which compares financing for high- and low-carbon energy.
The bank had previously committed to disclosing the figure following shareholder pressure, including from the New York pension system.
RBC also stated it will not report progress on its goal to allocate $35bn toward low-carbon energy by 2030.
RBC’s vice president of climate, Jennifer Livingston, said in a statement that the bank is “proud of its climate work and its increased funding of low-carbon energy.”
However, she added that “recent amendments to Canada’s Competition Act limit the information we can share on certain sustainability disclosures.”
Livingston added that while the Act requires alignment with internationally recognised methodologies, no such standards exist for some of its tracked metrics.
She stated RBC would continue monitoring progress internally.
According to Reuters, Ecojustice finance lawyer Tanya Jemec said in an email that “the Competition Act greenwashing provisions do not stop companies from making claims about their business that can be adequately substantiated.”
Jemec added that RBC’s refusal to release its energy financing ratio suggests it lacks confidence in its own methodology.
She noted that RBC performs poorly under the methodology developed by BloombergNEF, and said that adopting a recognised framework might allow the bank to comply with greenwashing rules, “but doing so could expose its poor performance.”
As reported by The Canadian Press, Stand.earth climate finance director Richard Brooks called the decision a “disappointing and concerning step backwards.”
He said it underscores the need for stronger climate regulation.
“RBC is stepping further back, so in my opinion, this means Carney must step forward and acknowledge voluntary measures will not work and regulation must be accelerated,” Brooks said.
Other major North American banks have made similar moves.
According to Wired, the six largest US banks—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo—exited the United Nations-backed Net-Zero Banking Alliance (NZBA) in late 2024 and early 2025.
As per the report, the banks attributed their withdrawal to political pressure and legal risks linked to environmental, social, and governance (ESG) commitments.
Canadian banks followed suit.
As reported by Benefits and Pension Monitor, TD Bank, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce, and Scotiabank also left the NZBA in early 2025, prompting concerns about the viability of voluntary climate goals in the financial sector.
Beyond the banking sector, large North American companies have also adjusted or abandoned their climate plans.
According to The Verge, Amazon quietly dropped its ‘Shipment Zero’ goal, which aimed for 50 percent net-zero shipments by 2030, and folded it into its broader Climate Pledge instead.
As reported by The Guardian, British Petroleum reduced its emissions target from a 35 percent cut by 2030 to a range of 20–30 percent. In 2025, the company also increased its oil and gas investment by 20 percent while reducing renewable spending.
Chevron has set a goal to reduce the carbon intensity of its products by 5 percent by 2028.
However, according to Bloomberg, investors have pushed back, demanding absolute emissions cuts of 40 percent by 2030 to meet the Paris Agreement.
